Enterprise Investment Fund acquires 40% share in Promens
The Enterprise Investment Fund has concluded an agreement on the acquisition of a 40% interest in Promens hf. The acquisition price is ISK 6.6 billion and includes an increase in Promens share capital which will be used to reduce debts and for investments. Among projects currently in progress at Promens is the enlargement of the company’s plant in Dalvík, Iceland. The acquisition will reduce the holdings of Horn Investment Company hf. in Promens from 99% to 59%. The owners have plans to list Promens on the stock market in two to three years’ time.
Promens is a leading global plastics manufacturer operating 45 plants in 19 countries. The company manufactures a wide range of products, including packaging for food, cosmetics, and pharmaceuticals, in addition to components for automobiles, agricultural machinery and heavy machinery. Promens serves enterprises in a number of industries, including food processing, chemicals and pharmaceuticals and the automotive and electronics industries. The company’s turnover in 2010 was ISK 94.6 billion (EUR 584 million), and profit after taxes amounted to ISK 1.9 billion (EUR 11.7 million). Promens has 4,200 employees, including 80 people in Iceland, where the company operates two manufacturing facilities, Promens Dalvik and Promens Tempra. The operation of the two Icelandic companies has been successful in the past months and years. Promens' roots can be traced to the foundation of Sæplast in Dalvík in 1984, where the company still runs a successful plant, Promens Dalvik, with an average workforce of 40-50 employees. Work is currently in progress on enlarging the Dalvik plant in order to meet steadily increasing demand for the company’s products. Following the acquisition by the Enterprise Investment Fund, the Fund will own 40% of the shares in Promens, while Horn Investment Company will own 59% and key employees just short of 1%.The acquisition is subject to due diligence.
“Promens is a powerful company and has shown significant success in strengthening its operations following the economic difficulties in Europe in 2008 and 2009. The company offers a very wide range of products produced in its manufacturing facilities across the world, including Iceland.There are good opportunities in the markets where Promens operates, and the company will undoubtedly be regarded as an attractive investment opportunity when listed on the stock market. We will work closely with other investors, the staff and management on strengthening the company’s operations even further,” says Finnbogi Jónsson, Managing Director of the Enterprise Investment Fund.
Hermann Már Thórisson, Managing Director of Horn Investment Company: “It is a very positive development for us to have the Iceland Enterprise Fund aboard as a Promens shareholder. Strong ownership backing will improve the company's potential to take the operations forward in the markets where it operates. Promens is an international company with a strong workforce and management commanding extensive knowledge and experience in their field and we are looking forward to an exciting time at the company.”
Ragnhildur Geirsdóttir, Promens CEO: “Strong ownership is very important for an international company like Promens, and it is a matter of great satisfaction for us here at Promens that the company is now owned by two powerful investment companies, Horn Investment Company and the Enterprise Investment Fund, who will participate in the company’s continued progress in the coming months and years.”
Enterprise Investment Fund slhf.
Finnbogi Jónsson, email@example.com, tel. +354 571 7080
Pétur Óskarsson, firstname.lastname@example.org, tel. +354 571 7080 and +354 863-6075 (mobile)
Horn Investment Company hf.
Hermann Már Thórisson, email@example.com, tel. +354 410 2800
Ragnhildur Geirsdóttir, firstname.lastname@example.org, tel +354 580 5555
Information for editorial staff:
On the Enterprise Investment Fund slhf.
The Iceland Enterprise Investment Fund is owned by sixteen pension funds, Landsbanki and VÍS. The Fund specialises in investments and business development. The role of the Fund is to participate in and shape the restructuring of the Icelandic economy and to invest its assets in line with the Fund’s investment strategy. In 2010, the Fund’s investments amounted to a total of ISK 17.6 billion, which represents approximately 33% of the Fund’s total equity subscriptions. The Fund has its headquarters in Reykjavík. The Chairman of the Board of the Iceland Investment Fund is Thorkell Sigurlaugsson, and the Managing Director is Finnbogi Jónsson.
About Horn Investment Company hf.
Horn Investment Company is a universal investment company which invests both in listed and unlisted securities in most sectors. Horn Investment Company is a subsidiary of Landsbanki, founded at year-end 2008. Among the objectives of Horn is to contribute to the development of the Icelandic equity market. The staff of Horn Investment Company is responsible for investments and for management of the company’s well diversified portfolio, which includes both listed and unlisted assets. Horn places great emphasis on constant and precise analysis of its investment portfolio and the markets represented in the portfolio at any time.